Coinbase has emerged as the best-performing stock in the S&P 500 for June, climbing 43% amid a surge of bullish momentum driven by regulatory clarity, product innovation, and deeper institutional interest in crypto.

The crypto exchange is now on track for its strongest monthly performance since November and has posted gains for three consecutive months — its first such streak since the end of 2023. On Thursday, Coinbase shares reached their highest level since the company’s IPO in 2021.

As reported by CNBC, much of the rally began with the exchange’s inclusion in the S&P 500 at the end of May, just weeks after President Donald Trump’s initial tariff announcements temporarily shook markets. Since then, the Senate’s passage of the GENIUS Act and the success of stablecoin issuer Circle have significantly boosted investor sentiment toward Coinbase.

Analysts Say Coinbase’s Fundamentals Are Now Undeniable

Oppenheimer analyst Owen Lau told CNBC that two major concerns — fee compression and regulatory headwinds — have been overblown. “Coinbase has been generating positive earnings consistently, which is why they were included in the S&P 500,” Lau said, adding that stablecoin regulation via the GENIUS Act has reduced a critical source of uncertainty.

The act establishes a federal framework for dollar-pegged stablecoins and grants new authority to the Treasury Department. Analysts expect this to create new growth avenues for firms like Coinbase that are already embedded in the stablecoin ecosystem.

Coinbase’s close relationship with Circle, the issuer of USDC, adds even more value. Citizens’ head of fintech research Devin Ryan noted that Coinbase earns 100% of the revenue from USDC held on its platform and about 50% of all other USDC revenue — representing 99% of Circle’s business. “If the market is bullish on Circle, then Coinbase offers indirect exposure without the same operational costs,” Ryan said.

READ MORE:

Nasdaq Firm Makes First Crypto Move With Bittensor Acquisition

Product Expansion Adds Fuel to the Rally

Coinbase’s growth is not just regulatory — the company has been expanding its services aggressively. June saw the rollout of a crypto-backed credit card with American Express, a stablecoin payment solution for e-commerce, and a partnership with Shopify. Additionally, JPMorgan announced a new “deposit token” on Coinbase’s Base network, showing rising confidence among traditional finance giants.

“There’s a sentiment trade unfolding,” Ryan explained. “Institutional investors are now looking at crypto as a maturing asset class. Coinbase is the most direct way to invest in that evolution.”

Source

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.